Hyundai, LG to Build Battery Cell Factory in Indonesia with Rp15.9tn Investment
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29 July 2021 20:15 WIB
TEMPO.CO, Jakarta - The Hyundai Consortium consisting of the Hyundai Motor Company, KIA Corporation, Hyundai Mobis, and LG Energy Solution will build an electric vehicle battery cell factory in Indonesia with a total investment value of around US$1.1 billion. This figure is equivalent to Rp15.9 trillion (with exchange rate of Rp14,500).
Investment Minister Bahlil Lahadalia expressed his appreciation to the cooperation. "This cooperation agreement is realized through a long process and negotiation so that it can benefit all parties," said Bahlil in a written statement, Thursday, July 29, 2021.
The Hyundai Consortium will cooperate with PT Industri Battery Indonesia (IBI) or Indonesia Battery Corporation (IBC), which consists of four state-owned companies, namely PLN, Pertamina, MIND ID, and Antam.
The battery cell facility is expected to push production capacity up to 10 giga watt Hour (GwH) to supply the needs of Hyundai's electric vehicles.
Indonesia and South Korea have signed the memorandum of understanding (MoU) of the cooperation. Bahlil ensures that the development of the electric car industry continues despite the pandemic. The Hyundai Group, said the minister, will complete the process of building its electric car factory in Indonesia in March 2022.
Read: Indonesia, Hyundai Sign MoU on EV Battery Plant Development
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